Lotte Chemical Pakistan Limited (LOTCHEM): 1QCY25 Preview: Profitability to stay muted - By Insight Research
<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">LOTCHEM is expected to post a PAT of PKR806mn (EPS:
PKR0.50) in 1QCY25 vs. loss of PKR19mn (LPS: PKR0.01) in
preceding quarter amid better core delta. While on YoY basis
profitability inch up by ~2%. To note, International PTA prices
plunged by ~13% YoY to clock in at ~US$682/ton. Similarly, PX
prices witnessed a decrease of ~16% YoY to clock in at US$868/
ton, resulting in an increase of ~9% in PTA-PX spread.
Company’s topline is expected to decrease by 25% YoY to clock
in at PKR24.3bn in 1QCY25, amid lower volumetric sales.
Whereas, same is expected to increase by ~20% QoQ due to
higher volumetric sales. Gross margins of the company are
estimated to clock in at 6.5% in 1QCY25, witnessing an increase
of ~130bps/5.7ppts YoY/QoQ on acc...
